This 5-day, 3-board pharmaceutical stock was fined more than the company's net profit in the first three quarters because of monopoly

On December 19, the pharmaceutical sector was clearly differentiated, with 16 stocks such as Ling Pharmaceutical and Tailong Pharmaceutical falling by more than 10%, while Northeast Pharmaceutical came out of the contrarian "one" word up limit, harvested 5 days and 3 boards, and the stock price hit a new high
in nearly seven years.
Oriental Wealth shows that since December, the stock price of Northeast Pharmaceutical has risen by 42.
65%.

On the news, acetaminophen, ibuprofen, etc.
have recently been listed as commonly used drugs for fever, and the market is in short supply, and many citizens cannot even buy drugs at high prices
.
In this context, the 2 yuan 20 tablets of antipyretic acetaminophen tablets (paracetamol) produced by Northeast Pharmaceutical has attracted great attention
from netizens.
It is reported that acetaminophen tablets produced by Northeast Pharmaceutical have been on the market for decades, but there has been no price increase
.
In response, Northeast Pharmaceutical responded that the current supply of antipyretic drugs on the market is insufficient, the company is working overtime production, and now can supply about 300 pieces to pharmacies every day, and the drugs are still sold
at the previous parity.
In terms of production capacity, Northeast Pharmaceutical said that because the people now need, they will work overtime to produce acetaminophen tablets and other drugs to treat fever and cold, Shenyang Northeast Pharmacy chain stores have more than 100, are sold at parity, all pharmacies acetaminophen tablets are priced at 2 yuan
per board.
However, Northeast Pharmaceutical also said that due to the company's large variety of drugs, the unit price of paracetamol is low, and the proportion of antipyretic products in the company's performance is not large
.
It is reported that in addition to acetaminophen tablets, Northeast Pharmaceutical also produces compound aminophenolamine tablets, vitamin C tablets, vitamin C chewable tablets and other epidemic prevention related drugs
.
Recently, Northeast Pharmaceutical said that the company is stepping up the production of vitamin C series preparations according to market demand to ensure market supply
.
The analysis believes that the soaring stock price of Northeast Pharmaceutical is related
to the increase in short-term drug demand.
From a fundamental point of view, the company's performance is also good
.
According to the third quarter report of 2022, the company's operating income in the first three quarters was about 6.
569 billion yuan, a year-on-year increase of 7.
6%; The net profit attributable to the net was about 128 million yuan, a year-on-year increase of 402.
55%; The net profit after deduction was about 108 million yuan, a year-on-year increase of 1070.
2%.

However, the company also recently received an advance penalty
that exceeded the company's net profit in the first three quarters.
News on December 13, Northeast Pharmaceutical announced that the company recently received the "Administrative Penalty Notice" issued by the Liaoning Provincial Administration for Market Regulation, because the company violated the anti-monopoly law by selling L-carnitine APIs at unfairly high prices between November 2018 and June 2019, and the company was fined a total of 133 million yuan
.
The company said that if the above penalties are finalized, it is expected to reduce the company's attributable net profit in 2022 by 133 million yuan, which has exceeded the attributable net profit
achieved by the company in the first three quarters.
However, the industry believes that this behavior occurred between November 2018 and June 2019, which is a "short-term sale" and will not affect the company's future stock price and performance
after 2023.
The monopolistic behavior of the API industry is still a hidden disease in the pharmaceutical industry, which is mainly induced
by various reasons such as strict review of the API licensing system, high API market access threshold, and scarcity of market competitors.
In recent years, in order to curb the monopoly of APIs, relevant state departments have repeatedly made heavy efforts to rectify and severely punish monopoly price increases
.
At the same time, the penalties and illegal costs faced by illegal pharmaceutical companies have also increased significantly, and the fine of up to 100 million yuan may once again wake up to industry enterprises
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.